The Mark V Golf GTI, released in 2006, might be the greatest car ever– better than any Ferrari or Aston. Okay, that’s ridiculous. [Fair disclosure: I own one.] The Mark VI Golf, set to go on sale in Europe early next year and– knowing Volkswagen of America, in 2019 here– will not significantly diverge from the current GTI. The next GTI will keep the current model's turbocharged, FSI four-banger with 2.0-liters of displacement. It will pick-up Audi's variable valve lift. Horsepower rises by a handful of ponies to 211. But torque rockets from 207 ft-lbs to 258 ft-lbs. Fuel economy is likely to stay consistent or even improve. The big concern for VW: will that high torque number count against European rivals  offering more horsepower? As all these competitors are front wheel-drivers suffering from serious wrist-wrenching torque steer, maybe VW has the right idea. Which reminds me… the six-pot R32 goes away. In its place, a hotter GTI will feature VW/Audi's 2.0-liter turbo engine boosted to 265 horsepower, routed to all four wheels.  Yum.

TTAC's Best and Brightest have spoken. You provided us with 81 nominations for our Ten Best award, from the Aston Martin Vanquish to the HUMMER H2. From this cornucopia of cars, our ever-eager writers selected the short list of 20 finalists. As you might expect, the final list leans heavily towards vehicles notable for their performance and driving excellence. Half of this year's contenders were also finalists last year [indicated by an asterisk]. So here they are, along with some of your more "colorful" comments. Once you've had a look, please step into the e-voting booth and choose TTAC's Ten Best.

When it comes to PR-friendly consumer surveys, I'm from Missouri. I want to know who paid for them and what methodology was employed. Acxiom's "Automotive Consumer Dynamics Study" hails from an Arkansas data mining company whose website doesn't divulge a client list. Apparently, the study sample's from "the world’s largest repository of up-to-date U.S. consumer intelligence (InfoBase-XTM)… that spans over 200 million U.S. consumers representing over 130 million households and over 50 million vehicle purchase / trade-in transactions." Wow! So, with that in mind, Acxiom reckons some consumers are willing to trade down to small cars, and some aren't. Most consumers' vehicle choices are [now] heavily influenced by gas prices– but some aren't. Some consumers are hanging back on buying a new car, but most aren't. In fact, any member of the Best and Brightest who can find something rad in this study gets an honorable mention here: [ ———- ]

The Daily Vedomosti (a combination of The Financial Times, The Wall Street Journal and Russia's Independent Media) says Russian "oligarch" Oleg Deripaska is making a play to purchase GM's HUMMER brand. ABC News repeats the report without providing any further details– save a few salacious facts about the Russian 28-billionaire's unsavory past. In context, of course. "The U.S. State Department revoked his visa in 2005 because they were reportedly concerned he had not been honest about his business dealings. U.S. law enforcement officials reportedly believe he is tied to organized crime. The allegations add a layer of irony to the possible purchase, as the Hummer has been popular with the would-be outlaw set in the United States. Gangsta rappers like now-deceased Tupac Shakur and 'Gangster's Paradise' artist Coolio owned Hummers, as did Christopher Moltosanti, the young ill-fated capo in HBO's The Sopranos." Less culturally aware commentators may remember Deripaska as Magna strongman Frank Stronach's partner in his ill-fated attempt to "liberate" Chrysler from Daimler. Anyway, GM will neither confirm or deny the report. "We haven't announced any of the discussions that have taken place with any outside parties that are interested in the brand," Hummer spokesman Nick Richards announced.

Consumers living in The Land of Hope and Glory can now buy a right hand-drive (RHD) Cadillac CTS. But will they? In their review of the right-hooker CTS, the generally gentle AutoExpress notes that GM’s European operation hopes to shift 300 examples of the Cadillac CTS per year in the UK. Uh, does that cover the cost of the RHD engineering and tooling? The UK Caddy comes with a choice of a 208 horsepower, 2.8-liter V6, the 3.6 liter direct injection we Yanks enjoy (306 horsepower) and, eventually, a 250 horsepower diesel. The loaded 3.6 liter model goes for £33,000, which is the same as a BMW 335i. While the CTS ostensibly “competes” with the 5-Series in Europe, that’s an uphill battle– even against a BMW 525i (£35,000) or Mercedes E280 (£34,700).

New York Times Op Editorialist Bob Herbert thinks motorcyclists in particular and American voters in general have been hood-winked by pols who proclaim that drilling for oil would offer relief from high gas prices. Make that "immediate relief." "Maximum capacity from these new leases wouldn’t be reached until 2030, when that 7- or 8-year-old is approaching 30, finished with college and graduate school, and very likely married with children. And even then — after more than two decades and who knows how many graduations, weddings, funerals and family cars — even then, the amount of oil expected to come from these leases would have little or no effect on the price of gasoline at the pump." So that's that then. Except for a slam at anyone stupid enough not to accept Herbert's argument. "I wonder if the electorate will ever wise up." Yeah, democracy sucks. You know, except for all the other systems [hat tip to Winston Churchill for the pithiness].

Bob Lutz better watch out; his boss is challenging him for the title of Most Delusional Person on Earth. After the Olympic Games' opening ceremonies, Rick Wagoner told Financial Times, "I would say, from an assembly perspective [the pain] is largely behind us." And even though GM has had to cut large chunks of their workforce, is losing market share on an almost daily basis and flushed $15.5b down the toilet last quarter, he feels they're in "a pretty good position." Since the interview was in China, the discussion turned to their Chinese operations. "This has been miracle story from our perspective. For me it's the replay of the US auto industry in the 50s, 60s, 70s, but the upside potential is dramatically greater." Correct me if I'm wrong, but aren't those the decades when GM began, advanced and perfected the brand dilution and model overlap that brought them to the point they are today? And when someone pointed out that analysts expect sales growth in China to slow drastically this year, he didn't care. "That's not something we are losing sleep over." Of course, with the golden parachute he has strapped to his back, he probably doesn't loose any sleep over very much of anything. His private little world must truly be a wonderful place to live in.

Chrysler ranks below the industry standard in J.D. Power and Consumer Report quality ratings. So when ChryCo VP for manufacturing Frank Ewasyshyn announced that warranty costs had fallen by 29 percent in the past year, he had a bit of trouble explaining why the improved reliability wasn't showing up on recent external surveys. When asked by MSNBC to explain this conundrum, Ewasyshyn replied, "If I could answer that question, you wouldn't be asking it. We certainly put enough energy and effort into it." He points to all the things Chrysler is doing right: sending teams to investigate recurring vehicle problems, establishing worker input boards, and standardizing production processes. But then Ewasyshyn takes a page from the GM's handbook: "In the meantime the rest of the organization is focused on improving the things that are customer dissatisfiers, or again, perceived quality." To be fair, Chrysler is digging its way out of a giant hole. Before Daimler offloaded Chrysler, it had the highest warranty costs in the nation; improvements haven't been dramatic enough to bring things up to industry standards. Meanwhile, Chrysler is essentially staying the Tom Lasorda-guided course. "We've got a plan. It works. We're gonna stick to it. And it's constantly being reinforced," Ewasyshyn said. "We know the right formula. Sticking to it and just constantly pushing it every day of the week, challenging people to do better, that's how we're going to get this thing done once and for all."

Henry Ford said "You can't build a reputation on what you are going to do." Someone forgot to tell Bennie Fowler, Ford's group vice president of global quality. The Detroit News reports that Fowler stepped up to the microphone in front of his peers and started playing the dozens with the quality king. "In a direct challenge to Toyota… Fowler told industry leaders at the Center for Automotive Research's annual Management Briefing Seminars that new European- designed compacts and subcompacts such as the Fiesta and Focus will roll off the line with an average of 800 things gone wrong per 1,000 vehicles." If Fowler can meet that ambitious target, it would place Ford's quality above Toyota's– at least in this metric. Yes, well, apparently The Blue Oval Boyz are headed for one of those fist-pumping moments. "This time, we're playing for all the marbles — and we aim to win." Note to Bennie: must follow Crazy Henry's dictates. Such as, "Quality means doing it right when no one is looking."

You know Houston is a town riding high on oil revenue when the local Lamborghini dealer invites members of the media to gawk at their latest inventory. Seeing the LP560 up close and personal and getting my fingerprints (oops!) on the Reventón was fun. And it turns out that Lamborghini Houston is the world's volume leader for the Reventón, cornering 20 percent of market. So they're stacking 'em deep and selling 'em cheap? Not at $2.5m they're not. The Gallardo is a different story: Lamborghini is reacting to market changes faster than anyone expected. Without the restrictive "list" of their Maranello counterparts, Lamborghini faces a glut of '08 Gallardos languishing on dealer lots. The days of easy money are gone, and used Gallardos' resale value keeps new car demand low. So the Raging Bull now only produces LP560s after customers buy them and keeps costs to a minimum with a fancy-schmancy IT infrastructure. (Thanks, Audi!) The customer specs their Lambo via plasma screen in the dealership's ritzy lounge, and the money saved goes to customer-grabbing promotions like shows and racetrack events. And unlike the tsunami of Tundras threatening Toyota's sales numbers, nobody in Bologna fears underproduction. That's just more time for the craftsmanship, baby.

High material costs (particularly steel) are wreaking havoc on automotive suppliers, caught between soaring raw materials costs and cost-cutting customers. But the industry is getting a new tool which could help iron-out the most precipitous jumps in steel prices. Automotive News [sub] reports that the New York Mercantile Exchange will introduce a futures market for domestic hot-rolled coil steel this fall. The move could provide more price predictability for the crucial commodity. "The NYMEX proposal is one more option that we will review in determining the most appropriate overall strategy for us," GM spokesfolks didn't reveal. Steelmakers are not thrilled by the plan. They prefer the current method of direct price negotiation, and warn that speculators could drive prices up (it's hard to believe things could be much worse than the doubling of steel prices since December). Steel mill profits have been strong during the period of price increases, and the bankruptcies which once riddled steel production have migrated to steel customers, particularly auto parts suppliers. Though speculation is always a concern, a competitive futures market typically stabilizes market prices and makes downstream contract negotiations far easier.

I don't want to sound double negative about Caddy's new $71,685 gas – electric Escalade Hybrid, but the man in charge doesn't have a clue about his brand's positioning. Speaking to The Wall Street Journal about tanking sales (down 12 percent year-to-date), Cadillac's Product Guy seems to think Caddy's target market are the uber-rich. "'Many people, despite the economic times, are still doing well,' said John Howell, Cadillac global products director, noting that sales of luxury yachts and private jets are on the rise. 'These peoples' needs haven't changed. They still want the top-of-the line products.'" Assuring his place in the nominations for TTAC's Bob Lutz award, Howell goes on to repeat Maximum Bob's maximum gaffe. "'Image also is a factor, he said. The 'green' movement sweeping the nation has wealthier buyers thinking twice about a gas-guzzling SUV, but not because they can't afford the fuel. 'There's negative karma around SUVs,' Mr. Howell said. He hopes a hybrid Escalade will ease some of those image problems." So, how does all this square with Caddy's relentless march down market? Answer: it doesn't.

ToMoCo's fears of "big company disease" seem most credible when looking at its non-Toyota brands. While Scion fails to capitalize on increased demand for smaller, more efficient cars, Lexus is struggling to adjust to the changing market conditions. Automotive News [sub] reports that Lexus has relied too heavily on SUV and crossover sales, allowing its car offerings to wither on the vine. The IS isn't due for a restyle until 2012, the GS and ES models are two and three years away from redesigns respectively, and the aging SC430 is [still] dead in the water (1,373 sales year-to-date). On the performance front the GS-F's on hold and the LF-A development project has failed to hit performance benchmarks in line with its $160k price tag. Delaying the LF-1 production model until 2010 seems a foregone conclusion. Even then there's no guarantee that there'll be a market for Lexus' halo model. No wonder, then, that Lexus is amping-up its hybrid options. Not only does "the power of H" give the brand unique cachet, but it also returns hefty profits on ToMoCo's hybrid platforms, helping the Japanese automaker drive down costs on Toyota-branded hybrids. 

Walk into a video rental store, and you're sure to encounter a large number of titles you've never seen gracing the marquee of your local cineplex. Similarly, rental companies hunting for the best deals buy-up huge numbers of the slowest-selling vehicles at cut-rate prices. And nobody makes more straight-to-rental releases than Chrysler. So it should come as no surprise that rental firms like Dollar Thrifty Auto Group have fleets that are up to 85 percent Chrysler. And that shouldn't be the end of the world, because most of the rental car market doesn't mind rocking a Sebring for a weekend if it saves them some cash. But, for Dollar Thrifty, the now-legendary Chrysler depreciation is munching a giant hole in their bottom line– at a time when rentals are slowing anyway. The LA Times reports that Dollar Thrifty (DT) has posted a 30 percent decline in Q2 earnings compared to last year, spurred by epic depreciation among the Chryslers that make up the bulk of DT's fleet. Costs associated with depreciation are up 28 percent. The only thing falling faster than the value of DT's fleet is their stock price, down 89 percent in the last year. 

The inventory levels and average sales per franchise (SPF) numbers as of August first are out and almost everyone looks good on the car side of the inventory sheet.  Trucks are a whole ‘nother matter, though.  Dealers are doing whatever they have to– including half price sales– to move body-on-frame trucks but inventory is still piling up.  Just how bad is it?  Well, let's take a look…